Tuesday, April 27, 2010

Please don't peel the onion

I had estimated that we would be between 30 million and up to 200 million in the hole when the next administration took over. Both Landrieu's admin. and these city officials are estimating the low end of my guess....but....I fear they may not be taking some critical factors into account.

1. The Revolving Fund - I still have not seen a total expenditure amount on the fund and I'm very concerned that large chunks of that cash were misappropriated.

Let's just take the largest amount I know of, 18 million bucks for the Mahalia Jackson Theater. If that project is rejected by FEMA ....oy vey.

There could be myriad other expenditures from the fund which we have yet to discover.

I hope I'm wrong.

2. LRA/ D-CDBG Funds - Has any of this money been misappropriated? I have heard that is the case and if so, how much? If HUD comes knocking and asks for money back....it could be a massive chunk of cash.

I hope I'm wrong.

So not to toot my own horn, but I was nearly right on the money on the low end...I said the low end would be 30 million. The high end is contingent on how much federal money the Nagin administration may have misappropriated.

A rumor I've heard is that a huge portion of the hole is actually do to the Mid-City Hospital plan. Lots of money getting shifted around and revenue projections that are turning out to be complete fantasies...

To what degree does all of the above depend on the disposition of FEMA personnel? Do they have a wide enough discretionary power to rule that some of these questionable projects are OK if they are so inclined?

Jeffrey, I am not sure how much of the discretionary power lies with FEMA or with the state, but just to clarify it's not so much about the validity of the projects as it is the procurement process which Nagin had in place to award those contracts.